"The information we have is that he applied for a grant from the national lottery. The grant was for the purpose of establishing the first ever corporate heritage centre museum and hall of fame in Johannesburg," Hawks spokesperson Captain Paul Ramaloko said.
According to the Hawks, Mutumwa Mawere was granted a R4.4 million grant by the national lottery, however, he used the funds to launch a book among other things at a five star hotel in Johannesburg.
When the businessman was due to submit documentation to the national lottery, he allegedly submitted fraudulent documents.
Mawere was arrested on Tuesday and appeared in court on the same day.
It was not clear when he would appear in court again.
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